New Issue: Bank of Montreal prices $22 million Raymond James Housing Opportunity notes linked to stocks

By Angela McDaniels

Tacoma, Wash., Sept. 22 – Bank of Montreal priced $22 million of Raymond James Housing Opportunity Series 2 equity-linked notes due Sept. 30, 2016 linked to a basket of 13 common stocks, according to 424B2 filings with the Securities and Exchange Commission.

The reference stocks are Apartment Investment and Management Co., American Homes 4 Rent, American Residential Properties, Inc., Catchmark Timber Trust, Inc., D.R. Horton, Inc., St. Joe Co., Mohawk Industries, Inc., Potlatch Corp., PGT, Inc., Post Properties, Inc., Toll Brothers, Inc., WCI Communities, Inc. and Weyerhaeuser Co. The weighting is 5.5% for American Residential Properties, 2.75% for Catchmark, 6.75% for WCI and 8.5% for each of the remaining stocks.

The notes may pay a variable coupon each quarter. The coupon will depend on the total dividends paid on the shares during the preceding quarter.

The payout at maturity will be 97% of the sum of par plus the basket return. This calculation will result in a payout below par if the basket return does not exceed 3.09%.

The initial share price of each stock will be determined over three averaging dates – Sept. 18, Sept. 21 and Sept. 22 – occurring shortly before issuance. Likewise, the final share price of each stock will be determined over three valuation dates, which are Sept. 23, 2016, Sept. 26, 2016 and Sept. 27, 2016.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Raymond James Housing Opportunity Series 2 equity-linked notes
Underlying stocks:	Apartment Investment and Management Co., American Homes 4 Rent, American Residential Properties, Inc., Catchmark Timber Trust, Inc., D.R. Horton, Inc., St. Joe Co., Mohawk Industries, Inc., Potlatch Corp., PGT, Inc., Post Properties, Inc., Toll Brothers, Inc., WCI Communities, Inc. and Weyerhaeuser Co.
Amount:	$21,995,000
Maturity:	Sept. 30, 2016
Coupon:	Variable, payable quarterly depending on total dividends paid on shares during preceding quarter
Price:	Par
Payout at maturity:	97% of sum of par plus basket return; may be less than par
Pricing date:	Sept. 18
Settlement date:	Sept. 25
Agent:	BMO Capital Markets Corp.
Fees:	2%
Cusip:	06366RY25

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